Final answer:
In a cash-value life insurance policy with a level death benefit, the policyholder designates a beneficiary who will receive a constant death benefit amount, regardless of when the policyholder passes away.
Step-by-step explanation:
With a level death benefit, the policyowner designates a beneficiary that will remain constant. Cash-value or whole life insurance policies are designed to provide a death benefit and an accumulating cash value. This cash value portion of the policy can serve as an account which can be used by the policyholder.
The level death benefit means that no matter when the policyholder passes away, the death benefit payout to the beneficiaries remains unchanged, providing predictability and reassurance about the financial benefit that will be provided.